CENTURION PIPELINE L.P.

Incident Narrative

ON OCTOBER 11, 2010, AT APPROXIMATELY 7:30AM, A CENTURION GAUGER DISCOVERED A TANK RELEASE AT THE SLAUGHTER STATION IN SUNDOWN, TEXAS, TANK 6688. THE RELEASE WAS IN A CONTAINED AREA AND DID NOT THREATEN WATER OR ENVIRONMENTALLY SENSITIVE AREAS. THE RELEASE DID NOT CAUSE ANY FIRE OR PERSONAL INJURIES. NO PROPERTY OUTSIDE OF CENTURION CONTROLLED PROPERTY WAS IMPACTED BY THIS RELEASE. AFTER IMMEDIATE AND CONTINUOUS ASSESSMENT OF THE RELEASE, CENTURION PROPERLY NOTIFIED THE TEXAS RAILROAD COMMISSION, NATIONAL RESPONSE CENTER, PHMSA, AND EPA. FURTHER, CENTURION HAD AN EMERGENCY RESPONSE PLAN (""ERP"") IN PLACE AND APPROPRIATE ELEMENTS OF THE ERP PROCEDURES WERE IMPLEMENTED IN RESPONSE TO THIS INCIDENT. UPON DISCOVERY OF THE RELEASE, CENTURION EMPLOYEES IMMEDIATELY ASSESSED THE SITUATION, VERIFIED NO POTENTIAL TO IMPACT SENSITIVE AREAS, ATTEMPTED TO MITIGATE FURTHER RELEASE BY STOPPING THE FLOW OF OIL, AND RESPONDED WITH QUICK CLEAN-UP OF THE AREA BY DEPLOYING AN APPROPRIATE LEVEL OF RESPONSE RESOURCES. IN ADDITION, CENTURION CONDUCTED A TAP ROOT INVESTIGATION OF THE INCIDENT. AN OUTSIDE METALLURGIST ALSO ANALYZED THE HINGE PIN ASSEMBLY ON THE JENSEN MIXER. BOTH DETERMINED THAT EQUIPMENT FAILURE WAS THE ROOT CAUSE OF THE INCIDENT. SPECIFICALLY, IT WAS DETERMINED THAT THE HINGE PIN MECHANISM ON A JENSEN MIXER HAD FAILED, CAUSING A SEPARATION OF THE MIXER FROM THE TANK. IN ACCORDANCE WITH CENTURION POLICY, AN ACCIDENT INVESTIGATION WAS CONDUCTED. CENTURION IMMEDIATELY SHUT DOWN ALL JENSEN MIXERS WITH SUSPECTED HINGE PIN MECHANISMS. CENTURION IS IN THE PROCESS OF COMPLETING THE REPLACEMENT OF ALL JENSEN MIXERS THAT USE THE SAME HINGE PIN MECHANISM AS THE ONE FOUND ON TANK 6688. CENTURION IS NOT RESTARTING ANY JENSEN MIXER THAT HAS NOT HAD THE PIN ASSEMBLY REPLACED. IN ADDITION, AS A RESULT OF THE RELEASE, CENTURION REVIEWED ALL RELEVANT OPERATIONS, INCLUDING A REVIEW OF OPERATING PROCEDURES THAT IMPACT STORAGE TANKS AND CONTROL ROOM OPERATIONS. ALTHOUGH NOT A ROOT CAUSE OF THIS INCIDENT, BASED ON THIS REVIEW, CENTURION ENHANCED CERTAIN PROCEDURES IN AN EFFORT TO LIMIT THE POTENTIAL VOLUME OF CRUDE OIL THAT COULD BE RELEASED FROM TANKAGE.